Wednesday, December 10, 2008

Office furniture industry feeling some pain


Michael A. Dunlap & Associates have released the results of its quarterly MADA/OFI Trends Survey, designed to measure business activity of the office furniture industry and its suppliers. This survey was completed in October.
The October 2008 overall survey index is 50.54, the second lowest in more than four years. The highest recorded index was 59.72 in July 2005. Since the survey started in August 2004, the average is 56.18.
“I’m glad to see both these index values improve, but material costs are still impacting everyone, especially the small companies … Everyone is aware that raw materials costs are skyrocketing due to oil, steel and related commodity price jumps,” says Michael Dunlap.
“I think the industry is in a good position to absorb some downturn,” he said.
I’m glad he thinks so. Good barometers of any industry are the larger trade shows. For office furniture the big one is NeoCon. Attendance was slightly down in 2008. It will be interesting to see how a year of recession will affect the industry. I sure wouldn’t miss waiting in line at the Merchandise Mart for spot in a crammed elevator.

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